Transcript Slide 1
Debunking The Upgrade Myth
Charles Wierzbicki– Director, Information System, Saint-Gobain Carol Cvitkovich – Director, Global Resource Model, QAD
| Building the Effective Enterprise
Debunking The Upgrade Myth
Safe Harbor Statement
The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.
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Debunking The Upgrade Myth
Agenda
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Session overview Upgrade barriers Why upgrade?
Upgrade approaches Saint-Gobain – maximizing the upgrade benefits Summary Next steps?
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Debunking The Upgrade Myth
Session Overview
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Upgrade challenges and drivers Desire vs. reality Why upgrade Upgrade approaches Saint-Gobain’s upgrade experience Challenges Benefits Approach | Building the Effective Enterprise 4
Debunking The Upgrade Myth
Desire vs. Reality
80%
Customers who desire to upgrade within a maximum 6 year cycle | Building the Effective Enterprise
45%
Customers who achieve an upgrade within a maximum 6 year cycle 5
Debunking The Upgrade Myth
What Are The Barriers To Upgrading?
Time & Resource Cost of Upgrade Services Difficulty in Applying… Business Disruption No Business Benefit Lack of ROI Other 0% 10% 20% 30% 40% 50% 60% 70% | Building the Effective Enterprise Source: QAD Customer Survey – Jan 2013 6
Debunking The Upgrade Myth
Potential Value Drivers
Business Change Process Improvement IT Strategy Application
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Debunking The Upgrade Myth
Benefits – Areas Identified by Customers
2% 3% 3% 5% 9% 47% 20% 6% 5% Customer Service Financial Compliance Industry Compliance Inventory Effectiveness IT Effectiveness Manufacturing Efficiency Manufacturing Schedule Supplier Performance Supply Chain Effectivenss | Building the Effective Enterprise 8
Debunking The Upgrade Myth
Why Enterprise Edition?
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Addresses global requirements
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Scalable
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Ability to adapt to business changes
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Controls and audit capabilities
Role based security Segregation of duties
QAD’s “go to” platform
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Debunking The Upgrade Myth
Approach Alternatives
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Technical Re-alignment Hybrid Re-implementation | Building the Effective Enterprise 10
Debunking The Upgrade Myth
Upgrade Alternatives - Technical
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Like for like
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Perceived to be quickest and easiest
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Data quality influences effort/risk
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No change in:
Business processes Functionality | Building the Effective Enterprise 11
Debunking The Upgrade Myth
Upgrade Alternatives – Re-Alignment
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Reload rather than convert data
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Opportunity to cleanse data
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Facilitates EE data structures
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Recommended for upgrades to EE
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No change in:
Business processes Functionality
Other than Enterprise Financials
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Debunking The Upgrade Myth
Upgrade Alternatives - Hybrid
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Based on technical or re-alignment
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Includes:
Process improvement New modules or functionality ■
Can be single or multiple projects
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Debunking The Upgrade Myth Upgrade Alternatives – Re-Implementation
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Start almost from scratch
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Treated like new implementation
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Most complex
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Can be most beneficial
Increases come at cost | Building the Effective Enterprise 14
Debunking The Upgrade Myth
Approach Considerations
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Business value drivers
New modules or functionality Source/target versions Data quality Resource availability Budget Available time Standardization – current/target Customizations | Building the Effective Enterprise 15
Debunking The Upgrade Myth
Saint-Gobain – Maximizing the Upgrade Benefits
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Explore 2013
From Shared Services to the Shop Floor, upgrading the enterprise.
AGENDA
Back Ground
Business Overview Current Model
EE 2012.1 Upgrade
Architecture Core Model Design Key Decisions Modernizing the Shop Floor Manufacturing Catalog Effort/Benefit | Building the Effective Enterprise
Saint-Gobain
■ ■ ■ ■ ■ ■ ■ Started in 1665 Headquartered in Paris Operations in 64 Countries Worldwide 200,000 Employees Sales > $55 Billion More than 2000 Researchers 52 nd largest industrial company The 4 Sectors of Saint-Gobain Building Distribution Construction Products Containers Innovative Materials 345 year-old company
A Few Quick Facts: Saint-Gobain…
Was created in 1665 and built the Hall of Mirrors at the Palace at Versailles Supplied the glass for the Louvre pyramid Insulates one out of five houses in the United States Has equipped 80 capitals and more than 1,000 major cities throughout the world with water supply systems | Building the Effective Enterprise Manufactures 30 billion glass bottles and jars a year Provides glass for 50% of all cars in Europe
Saint-Gobain Performance Plastics – a global leader in innovative solutions Manufacturing Presence in 16 Countries 5,200 People in 24 countries Sales of more than $1Billion 3 SOAs, 7 SBUs, 49 Sites Broad range of Markets Served History of Innovative Growth
More than 100,000 products and 15,000 active customers | Building the Effective Enterprise
SG Performance Plastics
Wide Range of Markets Served
Automotive Biotech Oil/Gas/Chemical Pharmaceutical Electronics Electric Aerospace Food Appliance General Industry Laboratory Medical Document Processing Construction Dairy/ Beverage Environmental Transportation
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Saint-Gobain Performance Plastics – who we are…
• • • • • We transform plastics materials into shapes through specialized manufacturing processes: extruding, machining, coating, casting, molding, blending We sell high performance PROPERTIES - friction, purity, barrier/permeability, optical and insulating – generally in the form of a surface. We sell solutions and not just products We are able to manufacture 10’s to 1,000,000,000’s of custom engineered – differentiated components Quality, product approvals, and product certifications are critical in our applications so we have a very strong application engineering and testing capability, as well as, the manufacturing infrastructure to support these certifications.
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ERP System - Overview
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QAD’s MFGPRO Version EB 2.1
1750 Named Users World Wide Shared I.T. services for all sites Shared Financial Services by region
19 Sites in the USA (1 entity)
English (19 sites)
16 Sites in Europe (11 entities)
English (5 sites)
French (4 sites)
German (4 sites)
Spanish
Polish
5 sites in Asia
Chinese
Japanese
Korean
Thai (1 site) (1 site) (5 entities) (2 Sites) (1 Site) (1 Site) (1 Site)
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*** PRODUCTION *** United States - ERP System Design
Production Servers Databases
US Central Order Processing (Distributed) Environment
QAD Central Progress Databases CENTRAL Hewlett Packard RP7440 Unix Server AURORA Hewlett Packard RP7440 Unix Server
Private TCP Network
Sales Data Warehouse - Progress Database Central Sales/ Purchasing/ Accounting QAD Manufacturing Progress Databases Taunton MA Elk Grove IL Clearwater FL Worcester MA Beaverton M Poestenkill NY Ravenna OH Hoosick Falls, NY Portage WI Granville NY Seattle WA Mickleton NJ Central Sales PLUS 9 Mfg databases auto connected to each other.
Additional 9 Mfg databases auto connected to central and each other.
Wayne NJ Akron OH Bristol RI Garden Grove, CA Merrimac, NH Bridgewater NJ NETUIP00 Tomcat Central NETUIP01 Tomcat Aurora Production Server Production Server | Building the Effective Enterprise
***PRODUCTION *** European – ERP System Design
Production Servers Databases
European Server
QAD Manufacturing Progress Databases EURQAD
Hewlett Packard
RP7420 Unix Server Kolo Poland Kontich Belgium Chaineux Belgium Rioja Spain Koeln Germany Kilrush Ireland Rochdale UK Corby UK Corby UK Lindau Germany Weisbaden Germany Neuss Germany FLEG France NETUIP02 Tomcat European Production Server | Building the Effective Enterprise
***PRODUCTION *** Asia – ERP System Design
Production Servers Databases
Asian Server
ASIAQAD
Hewlett Packard
RP7420 Unix Server QAD Manufacturing Progress Databases Shanghai China 7800 Shiwa Korea 9300 Rayong Thailand 7900 Taipei Taiwan 9200 Suwa Japan 9400 Note: Each site in Asia has a separate entity for each SBU NETUIP03 Tomcat Asian Production Server | Building the Effective Enterprise
AGENDA
Back Ground
Business Overview Current Model
EE 2012.1 Upgrade
Architecture Core Model Design Key Decisions Modernizing the Shop Floor Manufacturing Catalog Effort/Benefit | Building the Effective Enterprise
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EE Upgrade Goals
■ ■ ■ strategy of regional Shared Service Centers Minimize changes to reduce downstream impact While still correcting “Sins of the past” Address internal audit concerns Uniformity across all databases/domains Achieved with use of “Shared Sets” for: − Accounts − Sub-Accounts − Cost Centers − Projects − Daybooks − Customers − Suppliers | Building the Effective Enterprise
***Target PRODUCTION *** US – ERP System Design
Production Servers Databases
US Server
QAD Manufacturing Progress Databases Cnetral
Hewlett Packard
RP7420 Unix Server NETUIP00 Tomcat US Production Server | Building the Effective Enterprise SHARED SERVICES NORTH AMERICA Shared Set - Accounts Shared Set - Customers Shared Set - Suppliers Taunton MA INV120 Elk Grove IL INV450 Clearwater FLA INV150 Worcester MA INV400 Hoosick Falls, NY INV410 Beaverton MI INV140 Poestenkill NY INV460 Ravenna OH INV210 Seattle WA INV220 Mickleton NJ INV520 Portage WI INV160 Granville NY INV620 Bristol RI INV270 Garden Grove, CA INV711 Bridgewat er NJ INV970 Wayne NJ INV420 Akron OH INV960 Central Sales SGPPL Merrimac, NH INV430
***Target PRODUCTION *** EU – ERP System Design
Production Servers Databases
European Server
QAD Manufacturing Progress Databases EURQAD
Hewlett Packard
RP7420 Unix Server Shared Set - Accounts SHARED SERVICES BENELUX Shared Customers Shared Suppliers Kontich Belgium Chaineux Belgium SHARED SERVICES FRANCE Shared Customers Shared Suppliers FLEG France SHARED SERVICES SPAIN Shared Customers Shared Suppliers Rioja Spain NETUIP02 Tomcat EUR Production Server | Building the Effective Enterprise SHARED SERVICES UK & IRELAND Shared Set - Customers Shared Set - Suppliers Corby UK Rochdale UK Bristol UK Kilrush Ireland SHARED SERVICES GERMANY Shared Set - Customers Shared Set - Suppliers Neuss Germany Weisbaden Germany Koeln Germany Lindau Germany
***Target PRODUCTION *** Asia – ERP System Design
Production Servers Databases
Asian Server
QAD Manufacturing Progress Databases AsiaQAD
Hewlett Packard
RP7420 Unix Server Shared Set - Accounts NETUIP03 Tomcat Asia Production Server SHARED SERVICES China Shared Customers Shared Suppliers Shanghai China Taipei Taiwan SHARED SERVICES Japan Shared Customers Shared Suppliers Suwa Japan SHARED SERVICES Korea Shared Customers Shared Suppliers Shiwa Korea SHARED SERVICES Thailand Shared Customers Shared Suppliers Rayong Thailand | Building the Effective Enterprise
Key Decisions:
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A/R Cash Application and A/P Payments will be transacted across domains from the shared service domain.
Operational domains will be SBU agnostic at the transaction level All SGA costs will be contained in the SSC domains.
Manufacturing facilities will be represented with a single site designation 5 “SAF” codes will be used for additional detail at the transaction level All sites will transact in the Global Chart of Accounts and use Alternate Chart of Accounts for Statutory requirements.
Transaction history will not be converted.
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Shared Sets
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Shared Sets are a means to provide uniform master data that exist across a single, multiple, or all domains in a database We will use shared sets across all domains in the database.
In most instances the shared set will be the same across the 3 databases
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Shared Sets (cont.)
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Those shared even across databases will be accounts, sub-accounts, cost centers, projects, daybooks Those differing across the 3 databases will be customers, suppliers, and exchange rates Customers and Suppliers will be shared across the US database. They will be shared across Europe by country where shared service centers exist.
Exchange rates will differ by country due to statutory requirements Unique “masks” on each domain will be used to define which cost centers and projects are viable
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Shared Sets (cont.)
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Accounts: All domains will use the same chart of accounts Sub-Accounts: Will only exist on SS domains for SG&A, but will be the same across all SS domains Cost Centers: All domains will use the same set of cost centers – masks will control their active/inactive status so that domain A will not be able use domain B’s cost centers.
Projects: All domains will use the same set of projects – masks will control their active/inactive status Daybooks: All domains will use the same set of daybooks
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SAF Codes (Supplementary Analysis Fields) SAF Codes are additional fields that can be attached to general ledger transactions to provide additional detail at the transaction level.
We can use up to 5 SAF codes on each transaction
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SAF Codes (cont.)
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Site Product Line Customer Type Supplier Type Item Type
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SAF Codes Benefits
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Enables us to reduce the number of GL accounts A single inventory account is all that is needed as the item type will allow a breakdown at the GL for raw, sub, fg A single intercompany payable and intercompany receivable account is all that is needed as the supplier/customer type will provide the breakdown by intercompany partner
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Daybooks & Layers
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Layers provide different ways of segregating transactions within a single GL account to satisfy reporting requirements Daybooks are linked to pre-defined layers Misc journal entries will be made to daybooks that are linked to a transient layer that must be approved to move from a transient layer to an official layer Layers will also be used for IFRS and other adjustments
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Upgrade Summary
■ ■ ■ Simplify 40 Databases become 3 Reduction of accounts using SAF codes Multi-Entity to single entity Shared Service Domains Cross Domain allocations & Intercompany charges Standardize Global Chart Of Accounts Single model deployed globally Centralized administration of master financial data Control Transitory layer for approval before posting Locking of accounts for adjustment entries Day Books | Building the Effective Enterprise
AGENDA
Back Ground
Business Overview Current Model
EE 2012.1 Upgrade
Architecture Core Model Design Key Decisions Modernizing the Shop Floor Manufacturing Catalog Effort/Benefit | Building the Effective Enterprise
Manufacturing Solutions Catalog
Real Time Production Reporting Formal S&OP Process Master Planning Forecasts Full Cycle Quality Manageme nt Fully integrated Automated, transparent flows Paperless Job & Document Dispatch Finite, Constraint Based Schedule | Building the Effective Enterprise (Configure d) Orders consume forecast Rough Cut Capacity Plan Configurator
Factivity MES
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Capabilities Overview
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Functionality that CAN be activated Labor/Resource tracking & reporting − Set-Up, Run & Down time Production/Scrap Reporting Material issues/consumption Machine Integration Barcode Integration Label Printing Document Delivery Custom input forms Interface to sub-systems | Building the Effective Enterprise
Quality Management System(s)?
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CEBOS MQ1 – Quality Management System
Document Control CAPA, NCR, Complaints, Etc.
Project / Program Management APQP, PPAP, Risk Management Real-Time Dashboard Reporting Employee Training Tracking Audit Management Gage Calibration Maintenance / Tooling Inspection / SPC Supplier Management and Supplier Access | Building the Effective Enterprise
QAD Configurator
■ Questionnaire guided product configuration
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QAD Configurator- Benefits
Custome r Finance Customer Need Sales Planning Engineer Mfg.
Transactions Automated:
Quote (7.12.1) Order (7.1.1) Item Master (1.4.1) Product Structure (13.5) Mfg. Requirements Custome r Sales Mfg.
Routings (14.13.1) Item Inventory (1.4.16) Item Planning (1.4.17) Item Cost (1.4.18) | Building the Effective Enterprise
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Debunking the Upgrade Myth
Summary
Debunking The Upgrade Myth
Summary
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Identify business drivers Material value aligned with business goals Delay increases cost and risk SE vs. EE Enterprise edition is the future Proven & structured approach Options Approach alternatives Phasing options Let us know how we can help | Building the Effective Enterprise 51
Debunking The Upgrade Myth
Next Steps
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Attend these related sessions: Is Enterprise Edition Right For You?
Explore the Proven Power of QAD Enterprise Financials Drive Your Financial Reporting with QAD Enterprise Financials Speak with your QAD Sales or Services representative about a Q-Scan | Building the Effective Enterprise 52
Debunking The Upgrade Myth
Questions & Answers
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Charles Wierzbicki:
[email protected]
Carol Cvitkovich: [email protected]
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www.qad.com
©QAD Inc. 2013 | Building the Effective Enterprise 54